Homeowners Insurance - Michigan

Sterling Heights and greater Macomb County have long been known for their safety. They fall below both the Michigan average and the national median for both violent and property crime. It’s a great place to settle down, and boasts a diverse, welcoming culture.

When preparing to buy a home, you need to plan how you will maintain that investment. Homeowners insurance is one of the most-essential tools you can use to help you do so. For help getting the right policy, contact First Independent—Descamps Insurance. We’re committed to helping every customer get a policy that will rush protection directly to you and your property as soon as you need it.

Understanding Homeowners Insurance

The housing market in Michigan is "hot" and has been on the rise since 2012, according to Zillow.com. Today, Michigan's median home value falls at $152,700, and properties sell for about $195,000.

When you put that much money into buying a home, you want to protect it in case of fires, theft and vandalism, severe storms, lawsuits and other unexpected occurrences. That’s what homeowners insurance is for. Policies exist to protect the financial investment that exists in your home. When unfortunate accidents occur, your policy can step in to help you afford the costs of recovery.

What are the types of home insurance?

Your homeowners insurance must be unique. Therefore, you’ll need a specific type of policy that meets your specifications. There are 7 types of policies for the average homeowner*:

HO-1: This is a basic policy that will only cover your house against a set list of damage risks.

HO-2: Policies will cover more losses than HO-1 coverage. They will also often cover possessions.

HO-3: These policies will cover numerous types of property damage unless they exclude them. Coverage will also insure your possessions and personal liabilities.

HO-5: This coverage is a lot like HO-3 coverage. However, it will extend a higher level of protection to your personal possessions.

HO-6: Also known as condo insurance, this policy will insure you for the property that you own, but will free you from the responsibility of insuring property belonging to the condo association.

HO-7: This is mobile home insurance. It will cover anchored structures and structures in transit.

HO-8: Also known as older home coverage, policies specifically cover old or historic homes.

Don’t worry if these explanations confuse you. Our agents can help you sweep away the jargon and get right to the source of the policy that will offer your property the most-appropriate protection.

*HO-4 policies are renters insurance, which are not applicable for home owners.

What does homeowners insurance cover?

Depending on the type of policy you select, you might be able to buy the following coverage:

Dwelling: Coverage will pay to repair or rebuild your home after a covered peril, like a fire.

Possessions: Use this coverage to insure belongings like clothing, furniture or electronics.

Loss of Use: This coverage can help you pay for hotel bills and related expenses that might pop up following a covered accident that forces you to temporarily move out of the home.

Liability Protection: Policies will pay if you make mistakes that harm others. Policies often cover bodily injury and property damage claims by others, along with legal costs if you get sued.

Emergency Medical Payments: Policies can help you pay for third-party injury costs if that person gets hurt in your home. It can pay regardless of whether the injury was your fault.

Scheduled items endorsements: You can use this coverage to protect valuable belongings, like jewelry or electronics. It will insure those items’ specific dollar amounts against numerous risks.

Sump pump/water backup endorsements: Most homes’ policies can pay for damage from burst pipes. However, sewer backups might have no coverage without this endorsement.

Keep in mind, you might also need a separate flood insurance policy in case you live in a flood zone.

Homeowners Insurance Cost FAQs

What will my policy pay me in case of a claim?

In many cases, your policy will pay you the replacement cost value (RCV) for structure damage, and actual cash value (ACV) for possessions. RCV policies can help you rebuild the structure at today’s value. With ACV coverage, your policy will only pay the depreciated value of an item at the time of the loss.

Keep in mind, you might be able to buy RCV possessions policies, and all policies will include deductibles and other limits. Ask your First Independent—Descamps agent about your coverage options.

Do you pay home insurance monthly or yearly?

In some cases, you can choose whether you want to pay your premium monthly, or in a lump-sum at the start of the annual term. However, some mortgage lenders might require you to pay in-full through your escrow account. Check with your lender to see if you have any payment requirements.

Does my homeowners insurance cost go up every year?

You might see some nominal increases your premium from year to year, based on things like changing risk factors in your area, the property value and other economic factors. You are likely to see a premium increase if you have made significant claims in the last year, though this might not occur from all claims.

Superior Policy Services When You Need Them

At First Independent—Descamps Insurance, we unequivocally believe that all Macomb County residents should be able to get top-rated, affordable and property-specific homeowners coverage. Come to us for policy services if you live in:

Sterling Heights

Madison Heights

Utica

Macomb

Rochester

Rochester Hills

Shelby Township

Clinton Township

Macomb Township

Mount Clemens

Birmingham

Berkley

and throughout Michigan

To help navigate your coverage choices, depend on First Independent-Descamps, your “Independent Agent”, to not only fully explain these important coverages, but will find the best rates among the several insurance companies we represent. Call us at (888) 513-8784
to get started today.